To find the cheapest mortgage you will need to consider more than just the rate.

Whilst finding the cheapest mortgage may appear to be as simple as comparing interest rates this is not the case.

There are advantages and disadvantages to all of the different mortgage products available and it is essential to consider the whole picture.

For example 2 year fixed rates are being advertised as low as 2.64%, with 3 year fixed rates a little higher at 2.95%. However with these short term fixes it is important to consider the impact of fees and the rate that the mortgage will return to once the fixed period ends.

If the fees are high the deal with the lowest rate may not offer the cheapest mortgage, fees have the greatest impact on shorter term products. In addition, if the rate then reverts to a high SVR, you may wish to remortgage at the end of the term which will mean additional mortgage fees will have an impact on the overall cost.

If you are looking for a longer term fixed rate they are generally higher, though reported statistics suggest that the gap has been reducing over the past few years. For example rates for 5 year fixes are being advertised as low as 3.59%. These deals offer longer term security at less than 1% higher than some of the lowest 2 year fixed rates.

With all fixed term deals and in particular longer term fixes of 5 years plus, it is also important to be aware of any early repayment charges. If your mortgage ends before the end of the fixed period, large penalties could apply.

Deal Direct can help you find the cheapest mortgage in real terms.Call our expert advisers to discuss your individual circumstances today. We can advise you on which type of mortgage we believe best suits your situation.